Hugo Boss Ag · XETR:BOSS
Hugo Boss — Shareholder Meeting (May 2011)
39 slides from Hugo Boss's shareholder meeting presentation, May 10, 2011
Slide 1: HUGO BOSS
HUGO BOS S$
Slide 2: Annual Shareholders' Meeting 2011
ANNUAL SHAREHOLDERS´ MEETING 2011 Stuttgart – May 10, 2011 Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 2 / 39
Slide 3: Agenda
AGENDA 2010 FINANCIAL YEAR GROWTH STRATEGY OUTLOOK Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 3 / 39
Slide 4: Highlights – 2010 marks most successful year in Group's history
HIGHLIGHTS – 2010 marks most successful year in Group’s history Sales at record high Powerful growth in China and the Americas Systematic expansion of own retail network Adjusted EBITDA margin at 20 percent Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 4 / 39
Slide 5: Sales and earnings development – on a growth-oriented path
SALES- AND EARNINGS DEVELOPMENT – HUGO BOSS on a growth-oriented path Sales and EBITDA before special items Sales EBITDA before special items (in EUR million) Sales EBITDA 1,686 1,729 1.800 1,632 500 1,562 1,496 450 1.500 350 400 1.200 350 275 272 267 300 900 233 250 200 600 150 100 300 50 0 0 2006
Slide 6: Sales by region – Broad-based growth
SALES BY REGION – Broad-based growth Sales development by region, y-o-y in euro fx adjusted Europe* 3% 2% 22% Americas 14% 40% Asia/Pacific 28% 11% Group 7% 0% 10% 20% 30% 40% 50% Europe with more dynamic development in second half Double-digit sales growth in Americas driven by ongoing strength in
Slide 7: Sales by distribution channel – Own retail with over-proportionate growth
SALES BY DISTRIBUTION CHANNEL – Own retail with over- proportionate sales growth Sales development by distribution channel, y-o-y in euro fx adjusted -1% Wholesale -5% 35% Retail 30% 3% Royalties 3% 11% Group 7% -10% 0% 10% 20% 30% 40% 50% Wholesale gains momentum in second half Growth in retail due
Slide 8: Income statement – Net income up by 82 percent
INCOME STATEMENT – Net income up by 82 percent Change in EUR million 2010 2009 in % Net sales 1,729.4 1,561.9 11 1 Cost of sales (661.8) (680.9) 3 Direct selling expenses (40.5) (33.9) (19) Gross profit 1,027.2 847.1 21 in % of sales 59.4 54.2 5.2 pp Selling and distribution expenses (574.4) (487.9)
Slide 9: Net financial position – Net debt almost halved
NET FINANCIAL POSITION – Net debt almost halved compared to prior year Net debt (in EUR million) 583 600 500 379 400 300 201 174 -47% 200 118 100 0 2006 2007 2008 2009 2010 Net financial position reduced by 47% to EUR 201 million Equity ratio increases from 19% to 27% Annual Shareholders' Meeting 20
Slide 10: Dividend – Increase proposed for 2010
DIVIDEND – Increase proposed for 2010 Dividend* and payout ratio (in EUR and in %) 2.03 1.46 1.38 1.20 1.01 0.97 0.85 0.76 0.76 0.79 84.7% 71.1% 67.0% 67.1% 64.9% 64.1% 65.2% 64.0% 75.2% 45.2% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010** Dividend proposal follows profit-oriented long-term pay
Slide 11: Share performance – HUGO BOSS shares outperform MDAX index
SHARE PERFORMANCE – HUGO BOSS shares outperform MDAX index HUGO BOSS Preferred Share Share Price Development (Index: December 30, 2009 = 100) HUGO BOSS Common Share MDAX 350 300 250 200 150 100 50 0 30-Dec-09 28-Feb-10 30-Apr-10 30-Jun-10 30-Aug-10 30-Oct-10 30-Dec-10 28-Feb-11 30-Apr-11 Annual Shar
Slide 12: Agenda
AGENDA 2010 FINANCIAL YEAR GROWTH STRATEGY OUTLOOK Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 12 / 39
Slide 13: Growth strategy – D.R.I.V.E. project ensures interaction between growth factors
GROWTH STRATEGY – D.R.I.V.E. project ensures interaction between growth factors INTER- CONSUMER NATIONALI- PROXIMITY ZATION D.R.I.V.E. BRAND RETAIL DIFFEREN- TIATION Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 13 / 39
Slide 14: Consumer proximity – stronger end-consumer focus
CONSUMER PROXIMITY – stronger end-consumer focus Early incorporation of market information Shortening of development and production processes Reducing complexity of collections Tailoring POS deliveries to actual consumer demand Introduction of new collection cycle Clearly defined core ranges for dir
Slide 15: Retail – global presence considerably extended
RETAIL – global presence considerably extended Number of own stores climbs by 99 to 537 Investments focus on Asia / Pacific growth region Improved like-for-like sales High-impact store concepts developed Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 15 / 39
Slide 16: Retail – successful new store openings in 2010 / 2011
RETAIL – successful new store openings in 2010 / 2011 Antwerp / Belgium Las Vegas / U.S.A Hong Kong Kunming / China Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 16 / 39
Slide 17: Retail – above-average increase in online sales
RETAIL – above-average increase in online sales Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 17 / 39
Slide 18: Retail – marked rise in share of sales
RETAIL – marked rise in share of sales Retail 22% 33% 40% 48% Wholesale 75% 64% 57% 49% Licenses 3% 3% 3% 3% 2005 2009 2010 2015 Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 18 / 39
Slide 19: Internationalization – Europe
INTERNATIONALIZATION – Europe More dynamic development in second half of year Double-digit growth in Great Britain Southern European markets stabilize Leadership in domestic market extended Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 19 / 39
Slide 20: Internationalization – Americas
INTERNATIONALIZATION – Americas U.S. sales up by 16 percent in local currency Additional sales floor space secured at U.S. wholesalers Strong brand positioning pays off Double-digit growth in Central and South America Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 20 / 39
Slide 21: Internationalization – Asia / Pacific
INTERNATIONALIZATION – Asia / Pacific China grows by 84 percent in local currency Successful integration of joint venture with Rainbow Group Clear perception as a luxury brand Continuing difficult market environment in Japan Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 21 / 39
Slide 22: Internationalization – non-European share of sales up sharply
INTERNATIONALIZATION – non-European share of sales up sharply Asia / Pacific 8% 10% 13% 21% Americas 18% 20% 22% 25% Europe 71% 67% 62% 51% Licenses 3% 3% 3% 3% 2005 2009 2010 2015 Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 22 / 39
Slide 23: Brand differentiation – clear positioning in premium and luxury segment
BRAND DIFFERENTIATION – clear positioning in the premium and luxury goods segment Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 23 / 39
Slide 24: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 25: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 26: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 27: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 28: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 29: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 30: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 31: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 32: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 33: Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011
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Slide 34: Agenda
AGENDA 2010 FINANCIAL YEAR GROWTH STRATEGY OUTLOOK Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 34 / 39
Slide 35: HUGO BOSS with strong first quarter 2011
HUGO BOSS with strong first quarter 2011 Sales Double-digit growth in all regions, channels and brands 539 444 +21% Sales in China more than double Q1 2010 Q1 2011 Strong wholesale business, especially in the U.S. EBITDA before special items 132 Own retail with continued strong growth 92 +43% Over-p
Slide 36: Financial guidance 2011
FINANCIAL GUIDANCE 2011 2011 Outlook Sales growth at least 12% (currency-adjusted) Growth of EBITDA at least 15% before special items Capex approx. EUR 90 mill. Own retail network Expansion by around 70 stores Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 36 / 39
Slide 37: Growth targets – ambitious sales and earnings targets until 2015
GROWTH TARGETS – HUGO BOSS with ambitious sales and earnings targets until 2015 SALES EBITDA 2.5 500 billion million 1.7 350 billion million 2010 2015 2010 2015 Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 37 / 39
Slide 38: Key takeaways – HUGO BOSS set for another record year
KEY TAKEAWAYS – HUGO BOSS set for another record year 2010 most successful year in the Group’s history to date Strong start into 2011 Solid foundation built for future profitable growth Annual Shareholders' Meeting 2011 HUGO BOSS © May 10, 2011 38 / 39
Slide 39: HUGO BOSS
HUGO BOS S$